United Kingdom: Income Earned In Virtual Worlds: Taxation Issues
Article by Graeme Nutt all

Originally published in e-Finance & Payments Law & Policy, Volume 1, Issue 7, April 2007
 
The explosion in virtual worlds has raised some interesting questions about when taxation should apply. Does tax apply to a virtual transaction that takes place in a virtual currency, or does it apply when that income is converted into ‘real world’ currency? Graeme Nuttall, a partner with Field Fisher Waterhouse LLP, examines these issues and the view of taxation authorities from around the world.
 

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United Kingdom: Tax Amnesty – Friend Or Foe?
Article by Andrew Goldstone

'In its quest for increased tax revenues, HM Revenue & Customs (‘HMRC’) has launched an initiative to identify and recover unpaid tax on undeclared interest from offshore bank accounts. It has already used its extensive enquiry powers to force certain banks to disclose offshore accounts held by their UK customers, and more banks will follow. From the information gathered, HMRC will identify any discrepancies between the amount of interest declared by account holders and the figures provided by the banks. HMRC will then claim tax, interest and penalties on the undisclosed income.

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United Kingdom: Milk Prices Take A Step In The Right Direction

The announcement by Tesco to give milk suppliers a base price of 22ppl could be a turning point for all involved if everyone in the supply chain is open and transparent.

Extraordinary things have been taking place in the UK milk supply chain. On 3 April, Tesco made headlines with the almost unbelievable announcement that dedicated suppliers would receive a base price of 22 pence per litre (ppl). Tesco currently buys its milk from processors Wiseman (60%) and Arla (40%), totalling a near 900m litre contract. About 500 Wiseman suppliers and 350 Arla Foods Milk Partnership members will be the beneficiaries of the highestpaying contract on the market.
 

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United Kingdom: The Surprise "Knock On The Door"
Article by Francis Kean and Neil Cooke

Originally published in BLG's Directors' and Officers' Liability Review, Summer 2007

Most company directors do not live in fear of investigations by the Companies Investigation Branch ("CIB") of the DTI. Nor should they. That said, the investigative powers of the CIB have recently been strengthened.

The statistics
According to the DTI Annual Report for the year ended 31 March 2006, 148 formal investigations were commenced, out of 3,702 complaints received. The vast majority were carried out under section 447 of the Companies Act 19851. Under this provision, the Secretary of State for Industry has discretion to pursue investigations into a company once grounds for suspicion of wrongdoing, misconduct or general reasons for concern have been established.
 

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